Woofun AI notes that US market analyst Herman Jin attributes recent AI hardware declines to the unwinding of crowded long positions in semiconductors and storage. The listing of SK Hynix ADRs forced investors with heavy AI exposure to sell liquid hardware assets to cover software shorts, reversing previous trends.

Jin asserts that while mid-term AI fundamentals remain intact, short-term trading structures are fragile due to negative gamma and low summer liquidity. He identifies the credit market as the primary risk, warning that rising financing costs for cloud providers could deepen doubts about AI ROI and impact downstream orders.